Singtel's Quarterly Profit Nearly Triples, Shares Approach Six-Year High
- tech360.tv
- Feb 20
- 2 min read
Singapore Telecommunications (Singtel) reported a nearly threefold increase in third-quarter earnings on Wednesday, driven by an exceptional gain. The announcement pushed its shares close to a six-year high.
Singtel's net profit surged 183.4% to SGD 1.3 billion (USD 968.85 million) for the quarter ending 31 Dec., up from SGD 465 million a year earlier. The increase was largely due to a net exceptional gain of SGD 639 million from the partial sale of stakes in Thailand’s Intouch and Indara, formerly known as Australia Tower Network, as well as its share of an exceptional gain from India's Bharti Airtel.
Shares in Singtel rose 1.2% to SGD 3.4 and were on track for their strongest trading session since 31 Jan., nearing the SGD 3.475 high last seen in July 2019.
Airtel's gain included a fair value increase from the consolidation of Indus Towers, a reversal of a doubtful debt provision by Indus Towers, and foreign exchange gains from the appreciation of the Nigerian naira and Tanzanian shilling.
Singtel now expects its earnings before interest and taxes, excluding contributions from associates, to grow at a strong pace. The company projects an increase in the high teens to low twenties percentage range for the 2025 financial year, an improvement from its previous forecast of low-double-digit growth.
The company also announced plans to pay a total ordinary dividend of approximately 16.5 Singapore cents per share for the financial year, up from 15 cents last year.
Citi analysts raised their price target for Singtel, maintaining a "buy" rating. They cited a 5% yield for the 2025 financial year and the potential for further capital management initiatives, alongside sustained double-digit net profit growth.
Singtel's net profit rose 183.4% to SGD 1.3 billion in Q3
Shares climbed 1.2%, nearing a six-year high
Gains were driven by asset sales and Bharti Airtel’s performance
Source: REUTERS